Former SEC Official: Ripple Ruling May Be Appealed and Overturned

Golden Ten Data, July 16th, John Reed Stark, a former executive of the US Securities and Exchange Commission, said that the court's ruling on the Ripple case is disturbing in many ways. The ruling appears to run counter to the SEC's mission to protect investors. The court ruled that XRP was sold as a security to institutional investors. Thus, the ruling grants institutional investors the protections afforded by the SEC. However, since the court ruled that XRP is not a security when it is sold on cryptocurrency exchanges, the ruling does not protect retail investors. Stark added that the ruling was not only arrogant but insulting because it assumed retail investors were generally stupid. Ripple's ruling is likely to be appealed. In addition, given the unprecedented nature of the ruling, it is likely that the Court will immediately grant an interlocutory appeal, which is likely to be heard by the Second Circuit.